In January 2011, Landscapes Golf Management (LGM) was able to assist Oak Hills when they were facing stagnant membership and revenue with increasing expenses and capital expenditure needs. LGM, working with the board and management, recommended a variety of systems and processes that required a paradigm shift in Oak Hills’ approach to providing a high level of member service while keeping an eye on the bottom line.
One of the key areas that required a new approach was food and beverage operations, which was a losing proposition based on outdated systems, processes, and menu development. A new culinary team that implemented an updated fresh menu along with traditional fare was able to create better food yields and reduce food waste and shrinkage. Combined with LGM’s national purchasing power, they saw a 32% increase in revenue, with expenses only increasing 21%, which improved the performance of the department by more than $120,000.
Within the club’s pro shop, operations were brought in-house which allowed them to be more competitive with merchandising concessions and to have a better variety of packages to attract more events. In addition, LGM’s purchasing power helped turn this important operation into a profit center rather than a break-even proposition.
Additional improvements at Oak Hills were geared towards not only retaining current members but also increasing membership, including attracting younger families with children. The club started by renovating the pool area and made other updates such as new furniture and paint, as well as providing an overall higher level of service to members - with trendier beverages and healthier food options. Another area that has helped increase membership and revenue was implementing revamped programming – including social events for families and more activities for non-golfing spouses, such as tennis with four newly resurfaced courts.
Once Oak Hills Country Club implemented this new membership campaign, they saw a 28% increase in golf members and 123% for social members. In addition, rounds of golf increased by 10%, gross profit increased by 23%, and operating income increased by 170%. With Landscapes Golf Management, Oak Hills’ ability to create a better member experience while generating more revenue and reducing expenses was key to their success.
The increased levels of membership and facility utilization have afforded the Board at Oak Hills the opportunity to complete the renovation of the front nine and remodel several areas of the clubhouse. These capital improvements have led to increased member satisfaction and continued relevance in the recreational lifestyle decisions of their current and prospective members.